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Bankruptcy court is a special court, and the power of a bankruptcy
judge is generally limited to bankruptcy matters. Congress has granted
bankruptcy judges jurisdiction over certain issues, called core
proceedings. This means the judge has the power to preside over and
enter judgments on these issues.

But sometimes issues arise in a bankruptcy case that are not
technically bankruptcy matters. These are called non-core proceedings.
Sometimes a bankruptcy judge can hear and make decisions on non-core
proceedings -- but only when the issues at hand relate directly to the
bankruptcy case. If the judge makes a decision in a non-core proceeding,
the decision cannot become a final judgment unless all parties consent.
If the parties don't consent, the bankruptcy judge submits proposed
findings of fact and conclusions to the district court.

So what is a core proceeding, and what is a non-core proceeding?

Core Bankruptcy Proceedings

Core proceedings are proceedings or issues that are entirely related
to the bankruptcy case. The bankruptcy judge presides over these issues.
Core proceedings in a bankruptcy case include:

Matters concerning estate administration. For example, the
court has jurisdiction over the trustee's duties in administering the
estate.

Matters concerning creditors' claims. For example, if the
trustee objects to a creditor's claim, the court has jurisdiction over
the objection.

Matters concerning the debtor's exemptions. For example, if
the trustee objects to the debtor's exemptions, the court has
jurisdiction over the objection.

Matters concerning the debtor or the trustee obtaining credit.
For example, in a Chapter 13 case, the debtor must seek court
permission before incurring debt.

Matters concerning the debtor or other parties turning over
property to the estate. For example, if another person is holding
property of the debtor, the court can order that person to turn that
property over to the trustee.

Proceedings to determine, avoid or recover preferences. The
trustee can seek to recover money the debtor paid to creditors during
the preference period, and the court will have jurisdiction over the
matter.

Proceedings to determine, avoid or recover fraudulent
transfers. The trustee can seek to recover money the debtor fraudulently
transferred, and the court will have jurisdiction over the matter.

Motions to terminate, modify, or annul the automatic stay. For
example, if a creditor files a motion to lift the automatic stay so the
creditor can foreclose or repossess, the court will hear the motion.

Proceedings to determine dischargeability or to object to
dischargeability of certain debts. For example, if a creditor objects to
the debtor's discharging its particular debt, the bankruptcy court
would hear the objection.

Proceedings to determine the validity, extent or priority of liens.

Confirmation of bankruptcy plans, such as the plan you file in a Chapter 13 case.

Matters concerning the use or lease of bankruptcy estate property.

Matters concerning the sale of bankruptcy estate property.

This list is non-exhaustive; core proceedings also include any other
proceedings that involve the administration of the bankruptcy estate.

Non-Core Proceedings

Non-core proceedings are proceedings that do not arise under
bankruptcy law, even if some of the issues in the case relate to the
bankruptcy. For example, if the bankruptcy debtor is in the middle of a
divorce, the divorce is a non-core proceeding. Although the debtor's
property affects the bankruptcy estate, the bankruptcy judge cannot
determine the outcome of a divorce case. Similarly, if a bankruptcy
debtor is involved in a personal injury lawsuit, the bankruptcy court
has no control over the personal injury case, even though the proceeds
may be bankruptcy estate property.

When a bankruptcy case involves a number of core and non-core issues
combined, the bankruptcy judge must determine issue by issue whether he
or she has jurisdiction over each one.